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Investing.com - BTIG initiated coverage on Carlsmed Inc (NASDAQ:CARL) with a Buy rating and a $21.00 price target on Monday. The medical device company, currently valued at $360 million, trades at $13.58 with a strong current ratio of 6.48, though InvestingPro analysis indicates the stock is in overbought territory.
The research firm highlighted Carlsmed’s differentiation in the $13.4 billion lumbar spinal implant market through its FDA-cleared aprevo platform, which combines AI-driven pre-operative planning software with patient-specific interbody implants. The company maintains an impressive gross margin of 74.44%, generating annual revenue of $32.27 million.
BTIG noted that third-party payers have recognized aprevo’s value, awarding Carlsmed with New Technology Add-On Payments and robust reimbursement through new MS-DRGs that reimburse at higher levels than traditional spine surgery.
The firm pointed to Carlsmed’s vertical integration of its manufacturing process, which enables delivery of the aprevo implant in a single-use sterile package within 10 days of scheduling, requiring no instrument sets or pre-and-post operative sterilization.
While customized implants are not new in musculoskeletal care, BTIG stated that Carlsmed solves many issues that have prevented their scale in the past. Unlock additional insights and 2 more exclusive ProTips for CARL with InvestingPro.
In other recent news, Carlsmed, Inc. has successfully launched its initial public offering (IPO) on the Nasdaq Global Select Market, pricing its shares at $15 each. The company offered 6,700,000 shares, expecting to raise approximately $100.5 million before accounting for underwriting discounts and other expenses. This IPO marks a significant step for Carlsmed, as it aims to capitalize on its AI-enabled personalized spine surgery solutions. Additionally, Piper Sandler initiated coverage of Carlsmed with an Overweight rating, setting a price target of $18.00. Goldman Sachs also began coverage with a Buy rating and a price target of $19.00, highlighting the company’s unique technology and potential for revenue growth. Both investment firms see promise in Carlsmed’s asset-light business model, which may accelerate its path to profitability. These developments reflect a positive outlook for Carlsmed as it enters the public market.
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